Urban Hierarchy and Firm Location Models

Appendix Chapter 4

Introduction • Why do cities differ in size and scope? • Model of firm location based on access to consumers • Ignore production costs

Characteristics of Region • Uniform population density • No shopping externalities (no one-stop shopping; no comparison shopping) • Ubiquitous inputs • Uniform demand for each product

Differences across products • Jewelry: Scale economies large relative to per-capita demand • 80,000 people to support each store • Single store serves entire region • Books: Scale economies moderate relative to per-capita demand • 20,000 people to support each store • Four stores serve the region • Pizza: Scale economies small relative to per-capita demand • 5,000 people to support each pizzeria • 16 pizzerias serve the region

Insights into Urban Hierarchy • Diversity in size & scope from differences in scale economies relative to per-capita demand • Small number of large cities and large number of small cities • Consumers travel to bigger cities, but not smaller cities of cities of same size

Limits of Central Place Theory • Focuses on location decisions based on access to consumers • Alternative: Location based on local inputs and agglomeration economies

Urban Hierarchy and Firm Location Models

Urban Hierarchy and Firm Location Models

Presentation Transcript

Chapter 11 Appendix

Chapter 1 Appendix

Appendix Chapter 1

Chapter 3 Appendix

Appendix 4

Appendix 4.A

Appendix ( Chapter 7 )

Chapter 4 Appendix

Appendix to Chapter 4

Appendix B.4

CHAPTER SIX APPENDIX

Chapter 1 Appendix

Chapter 2 Appendix

CHAPTER TWELVE APPENDIX

Chapter 4 Appendix Mutual Fund Evaluation Term Project

Chapter Five Appendix

Chapter 1. Appendix

APPENDIX 4

Chapter 16 Appendix

CHAPTER TWELVE APPENDIX

Appendix to Chapter 4